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The Chuzzlewits Have an Income of $M Per Week

Question 34

Multiple Choice

The Chuzzlewits have an income of $m per week.Let x be food and let y be all other goods.Let px be the price of food and py be the price of other goods.They can use food stamps to buy food at a price of px(1 - s) for up to x* units of food per week.If they buy more food than x*, they have to pay the full price px for additional units.Their weekly income is greater than px(1 - s) x*.The maximum amount of food that they can buy per week is


A) x* + (m/px) .
B) (m + x*) /px.
C) (m/px) + sx*.
D) m/(1 - s) px.
E) (m + px) /(1 - s) px.

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